Sumitomo Mitsui Plans Holding Company

Updated July 30, 2002 6:32 a.m. ET

Sumitomo Mitsui Banking Corp. said Tuesday it will set up a holding company in early December, becoming the last of Japan's four megabanks to adopt a holding-company structure. SMBC said it aims to strengthen its group operations under the holding company. Analysts said the move is significant because it allows the group to boost its dividend payout by funneling profits in from several money-making group units and by lowering the necessary reserves. SMBC said the new holding company, tentatively called Sumitomo Mitsui Financial Group Inc., will control the bank and three other group affiliates -- Sumitomo Mitsui Card...